Maldives and ADB
In the Spotlight
A revival in tourism and sustained construction and infrastructure spending at a pace higher than expected will likely extend this year’s growth rate to 2016, which is an upgrade from the earlier projection.
Strong economic growth driven by luxury tourism has lifted the Maldives to middle income status but weaknesses in the transport, education and financial sectors need to be addressed to reduce inequality, support private investment, and boost economic diversity, according to a new ADB study.
Ten years on from the Asian Tsunami of 2004, stronger and more resilient communities are enjoying the fruits of a reconstruction effort that also served as invaluable experience in the aftermath of other natural calamities.
This development effectiveness brief presents how ADB's operations in the Maldives has helped it progress from the United Nations’ Least Developed Country designation to Middle Income Country status as of January 2011.
The Maldives consists of over 1,190 islands, spanning approximately 900 kilometers along the Indian Ocean. Only 188 of these islands are inhabited, and the population is concentrated in a few of the larger islands. Malé, the capital, is home to 39% of the country’s total population of roughly 341,200 people, and only 19 other islands have populations exceeding 2,000 people.
In recent decades, the Maldives has enjoyed sustained growth, driven largely by its luxury tourism industry. However, as an island economy of relatively small scale, the Maldives is extremely vulnerable to external economic shocks and the negative impacts of climate change.
Since 1978, ADB has been a major development partner of the Government of the Maldives. ADB operations have focused on capacity building in public sector financial management, and support for transport, energy, and micro, small, and medium-sized enterprises.
Projects in Maldives
- Developing the Revenue Administration Management Information System
- Private Sector Development Project (PSDP)
- Regional Development Project Phase II
- Economic Recovery Program (formerly Public Resource Management Reform Program)
- Supporting Inclusive Micro- Small and Medium-sized Enterprise Development Project